SSC deepens links to international markets

The State Securities Commission (SSC) has recently announced that it
signed on to Appendix A of the International Organisation of Securities
Commission's Multilateral Memorandum of Understanding (IOSCO MMoU) on
September 18 in Luxembourg.

"This is an important
milestone, a new stage of deep integration with the international
capital market to attract investment into Vietnam," the SSC said.

The memorandum sets an international benchmark for cross-border
cooperation critical to combating violations of securities and
derivatives laws. In 2011, Vietnam joined Appendix B, which offers
measures to countries wanting to fully participate in the cooperation
and information exchange.

Following two years of
compliance with Appendix B, Vietnam has been accepted as a signatory of
Appendix A, where parties commit to support each other in the
enforcement of cross-border supervision.

"It proves
that the global market has recognised the development of the Vietnamese
stock market," said a statement from the SSC.

The
memorandum was developed in 2002, aiming to strengthen market
surveillance and information exchange between member countries.

Countries not eligible for Appendix A were considered to have
inconsistent and non-transparent legal frameworks, the SSC said.

It noted that Financial Stability Committee would rate a market based on its membership with the IOSCO MMoU.

"Countries not party to the memorandum face disadvantages in attracting foreign investors."

The SSC stated that being party to level A of the memorandum would
earn domestic capital markets credibility and a better reputation with
foreign investors.

The SSC added that it would be
able to gain from the experience of other countries in cross-border
trading to mitigate the risks of cross-border transactions to the
financial market.-VNA